Venture capital = Venture capital is a form of private equity and a type of financing that investor provide to startup company & Small business, that are believed to have long term growth potential.
• Venture capital generally comes from well of investors, Investment banks and any other financial institution.
Features of venture capital=
1. High risk, 2. Lack of liquidity, 3. Long term horizon, 4.Equity participation.
Methods of venture capital= 1. Equity, 2. Participating debentures, 3. Conditionl loan.
Venture capital trends ( 2022-2024) 1. The number of Mega- Deals continue to increase. 2. Equity crow funding gives normal people access to Venture assets. 3. Venture capital leaves Silicone valley ( intrest in “Silicone valley” has decreased by 80% over the last 5 years.) 4. Venture capital are cashing out.
9,518 employees have been laid off by 23 Indian startup , Which include unicorns such as ; Cars24 , ola, meesho,MPL, Unacademy, Flipkart,paytm etc.
Financial market
A market place where buyers & seller create & exchange financial securities, assets, such as shares, debentures, bonds, Currencies etc.
There are two main sectors= 1. Households = Surplus fund/Savings, it is surplus unit. 2. Business firms = They always needs funds, this is called the Dificit units . Example- companies.
Financial market transfer money supply from surplus unit (investor) to Dificit unit (Business firms)
5 pillars of the financial system= 1. Financial market, 2. Financial instruments, 3. Financial regulators, 4. Financial participants, 5. Financial services.
The top Indian companies with largest market cap are= 1. Reliance Industries- Rs. 1,795,732.38 cr. 2. Tata consultancy services- 1,396,835.78cr. 3.HSFC Bank= Rs. 931,429.06 cr. 4. Infosys = Rs. 795,241.87 cr. 5. ICICI Bank= Rs. 513,166.77 cr.
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